E-Supply Chains, Collaborative Commerce, Intrabusiness EC,

and Corporate Portals

Lecture 6

Supakorn Kungpisdan

ITEC5611

S. Kungpisdan2

Outline

• E-Supply Chains• Supply Chain Problems and Solutions• Collaborative Commerce and Collaborative

Planning• Internal Supply Chain Solutions: Intrabusiness

and B2E• Integration along the Supply Chain• Collaborate (Enterprise) Portals

ITEC5611

S. Kungpisdan3

E-Supply Chains

• supply chain– The flow of materials, information, money, and

services from raw material suppliers through factories and warehouses to the end customers

• e-supply chain– A supply chain that is managed electronically, usually

with Web technologies

ITEC5611

S. Kungpisdan4

Procurement

Value chain

Distribution,Warehousing,Transportation,After-sale service

7-5

The Value Chain –Internally Focused

Used to identify the flow of information through a set of business activities. It identifies two types of activities, primary and support

ITEC5611

S. Kungpisdan

ITEC5611

S. Kungpisdan6

E-Supply Chains (cont.)

• Managing Supply Chains– Managing supply chains can be difficult due to the

need to coordinate:• Several business partners• Several internal corporate departments• Numerous business processes• Possibly many customers

– Information technology provides two types of software solutions:

• SCM • ERP

ITEC5611

S. Kungpisdan7

E-Supply Chain Management

• The collaborative use of technology to enhance B2B processes and improve the operations of supply chain activities as well as the management of supply chains– Speed, agility, real-time control, and customer satisfaction

• The success of an e-supply chain depends on:– The ability of all supply chain partners to view partner

collaboration as a strategic asset

– Information visibility along the entire supply chain

– Speed, cost, quality, and customer service• Measure them with the target levels to be achieved

ITEC5611

S. Kungpisdan8

mySAP SCM Overview

PP/DS: Production Planning/Detailed Scheduling

ITEC5611

S. Kungpisdan9

Activities and Infrastructure of e-SCM

• Supply chain replenishment– Integrate production and distribution processes– Use information to reduce inventories, eliminate stock points,

support make-to-order manufacturing strategies• E-procurement• Supply chain monitoring and control using RFID• E-logistics

– Web-based tech to support material acquisition, warehousing, and transportation processes

• Collaborative planning– Buyers and sellers to develop shared demand forecasts and

supply plans for how to support demand• Collaborative design and product development

– Share product design and development techniques across multiple companies

ITEC5611

S. Kungpisdan10

Procurement

Create RFQ

Simulate pricing scenario, compare quotations

Create PO from requisition or quotation

- Create reminder periodically, - Update status of purchase requisitions, quotations, and POs

Checking and matching invoices

ITEC5611

S. Kungpisdan11

Sales Order ManagementPre-sales

Check stock & confirm delivery date

Issue goods delivery note

Transportation planning

Warehouse Management System

Issue invoice Create sales order

ITEC5611

S. Kungpisdan12

Supply Chain Collaboration

ITEC5611

S. Kungpisdan13

Infrastructure for e-SCM

• Extranets– Support interorganizational communication and collaboration

• Intranets• Corporate portals

– Gateway for external and internal collaboration

• Workflow systems and tools– Systems that manage the flow of information in organizations

• Groupware and other collaborative tools– Tools focused on facilitating collaboration and communication

between parties

ITEC5611

S. Kungpisdan14

Supply Chain Problems

• Supply chains can be very long, involving many internal and external partners located in different places

• Both materials and information must flow among several entities, and these transfers, especially when manually handled, can be slow and error-prone

• Companies can improve their demand forecasting by using IT-supported forecasts, which are done in collaboration with business

ITEC5611

S. Kungpisdan15

Supply Chain Problems (cont.)

• A lack of logistics infrastructure causes uncertainties that exist in delivery times– Pure EC companies are likely to have more supply chain

problems because they do not have a logistics infrastructure and are forced to use external logistics services

• Quality problems with materials and parts can contribute to deficiencies in the supply chain

ITEC5611

S. Kungpisdan16

Supply Chain Problems (cont.)

• The Need for Information Sharing along the Supply Chain– A supply chain includes the flow of information to and

from all participating entities– Many of supply chain problems are the result of poor

flow of information, inaccurate information, untimely information, and so on.

ITEC5611

S. Kungpisdan17

• Order taking can be done over the Internet, EDI, EDI/Internet, or an extranet, and may be fully automated

• Order fulfillment can become instant if the products can be digitized

• Electronic payments can expedite both the order fulfillment cycle and the payment delivery period

• Inventories can be minimized by introducing a built-to-order (on-demand) manufacturing process as well as by providing fast and accurate information to suppliers

• Collaborative commerce among members of the supply chain can be done in many areas:– From product design to demand forecasting

EC Solutions along the Supply Chain

ITEC5611

S. Kungpisdan18

Collaborative Commerce

• The use of digital technologies that enable companies to collaboratively plan, design, develop, manage, and research products, services, and innovative EC applications

• Implies communications, information sharing, and collaborative planning done electronically through tools e.g. groupware

• Fewer stockouts, less exception processing, reduced inventory throughout the supply chain, lower materials costs, increased sales volume, and increased competitive advantage

• Results in cost reduction, increased revenue, and better customer retention

ITEC5611

S. Kungpisdan19

Collaborative Commerce (cont.)

• collaboration hub– The central point of control for an e-market.

• A single c-hub, representing one e-market owner, can host multiple collaboration spaces (c-spaces) in which trading partners use c-enablers to exchange data with the c-hub

ITEC5611

S. Kungpisdan20

CFPR: Collaborative Planning, Forecasting, and ReplenishingVMI: Vendor Managed Inventory

ITEC5611

S. Kungpisdan21

Partners at any point of the network can interact with each other, bypassing traditional partners

ITEC5611

S. Kungpisdan22

Example of E-Collaboration

Retailer-Supplier Collaboration: Target Corporation– Target needs to conduct activities with more than

20,000 trading partners.– Target established an extranet-based system with its

partners in 1998

ITEC5611

S. Kungpisdan23

ITEC5611

S. Kungpisdan24

ITEC5611

S. Kungpisdan25

Collaborative planning, forecasting, and replenishment (CPFR)

• Project in which suppliers and retailers collaborate in their planning and demand forecasting to optimize flow of materials along the supply chain

ITEC5611

S. Kungpisdan26

The process ends with an order forecast

CPFR Process

ITEC5611

S. Kungpisdan27

Benefits of CPFR

• For retailers– Fewer out-of-stocks– Resultant lost sales– Less stored inventory

• For manufacturers– Fewer expedited shipments– Optimal inventory level– Optimally sized production runs

ITEC5611

S. Kungpisdan28

Intrabusiness and B2E

• The internal parts of the supply chain are related to the value chain and include:– Inbound logistics– Production processes– Outbound logistics– Marketing and sales– Customer services

ITEC5611

S. Kungpisdan29

• E-commerce activities conducted within an organization

• Intrabusiness can be done:1.Between a business and its employees (B2E)

2.Between units within the business

3.Among employees in the same business

Intrabusiness EC

ITEC5611

S. Kungpisdan30

B2E E-Commerce

• Intrabusiness EC in which an organization delivers products or services to its employees

• Some Representative Applications of B2E include:– Providing field representatives and employees in yards,

warehouses, and other non-office places with electronic communication tools

– Training and education provided over intranets– Employee use of desktop purchasing– Employee use of the corporate intranet for both

corporate and personal use to purchase discounted insurance, travel packages, and tickets to events

ITEC5611

S. Kungpisdan31

B2E E-Commerce (cont.)

• Activities between Business Units– Transactions between strategic business units can be

easily automated and performed over the organization’s intranet

– E.g. Ford dealership network.

• Activities among Corporate Employees– Many large organizations also provide a system by

which employees can collaborate on an individual (sometimes non-business) level

– E.g. place classified ads for buying or selling personal products, corporate equipments

ITEC5611

S. Kungpisdan32

Integration along the Supply Chain

• Enabling Integration– 2 parts of integration: internal integration and

integration with business partners– To ease the task of integration, vendors have

developed integration methodologies and special software called middleware

– In addition, major efforts are being undertaken to develop standards and protocols that will facilitate integration e.g. XML

ITEC5611

S. Kungpisdan33

Corporate (Enterprise) Portals

• A gateway for entering a corporate Web site, enabling communication, collaboration, and access to company information

• Reasons for implementing corporate portals:– To cut costs– To free up time for busy executives and managers– To add to the bottom line

• 2 types of corporate portals– Generic portals – Functional portals

ITEC5611

S. Kungpisdan34

Generic Portals

• Portals for suppliers and other partners• Customer portals• Employee portals• Executive and supervisor portals• Mobile portals

ITEC5611

S. Kungpisdan35

Functional Portals

• information portals– Portals that store data and enable users to navigate

and query these data

• collaborative portals– Portals that allow collaboration

ITEC5611

S. Kungpisdan36

ITEC5611

S. Kungpisdan37

Corporate Portal Applications

• Knowledge bases and learning tools• Business process support• Customer-facing (front-line) sales, marketing, and

services • Collaboration and project support• Personalized pages for various users

• Effective search and indexing tools• Security applications• Best practices and lessons learned• Directories and bulletin boards• News

ITEC5611

S. Kungpisdan38

Questions?